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Ashoka Buildcon Ltd.

BSE: 533271 Sector: Engineering
NSE: ASHOKA ISIN Code: INE442H01029
BSE LIVE 15:40 | 02 Dec 142.20 -1.90
(-1.32%)
OPEN

144.90

HIGH

145.00

LOW

141.00

NSE LIVE 15:30 | 02 Dec 142.55 -0.70
(-0.49%)
OPEN

143.10

HIGH

145.45

LOW

141.00

OPEN 144.90
PREVIOUS CLOSE 144.10
VOLUME 7359
52-Week high 211.90
52-Week low 111.00
P/E 17.69
Mkt Cap.(Rs cr) 2661.13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 144.90
CLOSE 144.10
VOLUME 7359
52-Week high 211.90
52-Week low 111.00
P/E 17.69
Mkt Cap.(Rs cr) 2661.13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashoka Buildcon Ltd. (ASHOKA) - Auditors Report

Company auditors report

to the Members of Ashoka Buildcon Limited

TO THE MEMBERS OF ASHOKA BUILDCON LIMITED

1. Report on the Financial Statements

We have audited the accompanying financial statements of Ashoka Buildcon Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

2. Management’s Responsibility for the Financial Statements The Company’sBoard of Directors is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

3. Auditor’s Responsibility

3.1 Our responsibility is to express an opinion on these standalone financialstatements based on our audit.

3.2 We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

3.3 We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

3.4 We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended on that date.

5. Emphasis of Matter

We invite attention to Note 27(XHI) of the financial results regarding the provisionmade against / write offs of the exposure of the Company in one of its associates PNGTollways Limited due to the termination of the service concession agreement with NHAI bythe associate company.

Our opinion is not modified in respect of these matters.

6. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act a statement on the matters specified in the paragraph 3 and 4 ofthe order is given in Annexure A.

(ii) As required by sub- section (3) of section 143 of the Act we report that :

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of written representations received from the Directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31st March2016 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(iii) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations in its financialstatements. - Refer note 27(XI) of financial statements.;

(ii) Based on the information and explanations provided to us the company has made therequired provisions towards material foreseeable losses in respect of long termcontracts.

(iii) The company was not required to deposit or pay any dues in respect of theInvestor Education and Protection Fund during the year.

for M P Chitale & Co

Chartered Accountants

Firm Regn No. 101851W

Ashutosh Pednekar

Partner

ICAI M No. 41037

Place : Mumbai.

Date : May 20 2016

ANNEXURE A TO THE INDEPEDENT AUDITORS’ REPORT

(Refer to in paragraph 5 (i) of our report of even date)

i) a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of all fixed assets.

b) Pursuant to the company’s programmeof verifying fixed assets in a phasedmanner physical verification of major fixed assets was conducted during the year. In ouropinion such programme of verification is reasonable.

We are informed that no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us title deeds of immovableproperties classified as fixed assets are in the name of the companyexcept for titledeed in case of one freehold land (gross block Rs.200 lakhs net block Rs.200 lakhs) forwhich transfer deed is yet to be executed in the name of the Company

ii) Inventories have been physically verified by the Management at regular intervals.In our opinion the frequency of such verification is reasonable. We are informed thatdiscrepancies noticed on such verification were not material as compared to the bookrecords. The discrepancies noticed on such verification have been properly dealt with inthe books of account.

iii) a) Based on the information and explanations furnished to us we are of theopinion that the terms and conditions of unsecured loans granted to fiveparties covered inthe register maintained u/s 189 of the Companies Act 2013 are prima facie not prejudicialto the interest of the company.

b) In case of the above loan the schedule of principal repayment and interest paymenthas been stipulated.

c) Since the principal and interest are not due for payment we are unable to commenton this clause.

iv) According to the information and explanations given to us and on the basis ofrepresentations of the management which we have relied upon the loans given by thecompany are not covered by Section 185 or Section 186 of The Companies Act 2013 andhence this clause is not applicable.

v) According to the information and explanations given to us the Company has notaccepted deposits from the public in terms of provisions of sections 73 to 76 of theCompanies Act 2013.

vi) According to the information and explanations given to us pursuant to the rulesprescribed by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 we have broadly reviewed the cost records and are ofthe opinion that prima facie the prescribed records have been made and maintained by theCompany.

vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company has been generally regular indepositing undisputed statutory dues including investor education and protection fundprovident fund employees state insurance income tax Value Added Tax (VAT) sales tax custom duty excise duty value added tax cess and other material statutory dues asapplicable with the appropriate authorities except that there have been certain delaysin payments in case of Income Tax Deducted at Source VAT sales tax works contract taxand profession tax in certain cases. There are no statutory dues that are outstanding asof March 31 2016 for a period of more than six months.

b) As at the year-end according to the records of the Company and information andexplanations given to us the disputed statutory dues that have not been deposited onaccount of appeal matters pending before the appropriate authorities are as under:-

Financial Year Amount ( Rs in lakhs) Particulars Authority
2000-01 93.34 Customs Asst. Commissioner of Customs Mumbai
2006-07 to 2009-10 404.57 Labour cess Asst. Commissioner Madhya Pradesh
2006-07 to 2010-11 44.11 Labour cess Asst. Commissioner Madhya Pradesh
2006-07 to 2010-11 587.00 Labour cess Asst. Commissioner Chattisgarh
2006-07200910 and 20112012 2312.31 Sales Tax Joint Commissioner (Appeal) Maharashtra
2008- 09 & 2009- 10 40.81 Sales Tax Deputy Commissioner (Appeal) Chhattisgarh
2008-09 1.93 Sales Tax Asst. Commissioner Gujarat
2007-2008 0.32 Sales Tax Asst. Commissioner Rajasthan
2011-2012 1.57 Sales Tax Asst. Commissioner Karnataka
2012-2013 1204.12 Sales Tax Asst. Commissioner West Bengal
2005-06 to 2008-09 14.56 Entry Tax Asst. Commissioner Rajasthan
2013-16 31.19 Entry Tax High Court -Writ petition Bengal
2008-09 11.48 Income Tax ACIT CC-1 Nashik
2009-10 0.24 Income Tax ACIT CC-1 Nashik
2010-11 82.67 Income Tax ACIT CC-1 Nashik
2011-12 20.99 Income Tax ACIT CC-1 Nashik
2012-13 2914.66 Income Tax ACIT CC-1 Nashik
Financial Year Amount ( Rs in lakhs) Particulars Authority
Total 7765.85

viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto banks financialinstitutions and debenture holders. The Company has not borrowed anyfunds fromGovernment.

ix) According to the information and explanations given to us on an overall basisfunds raised by way of QIB placement were temporarily placed in current investmentspending utilisation for the stated objective and subsequently utilised for the purposefor which they were raised. Terms and conditions of utilisation of funds raisedthroughdebt instruments & loans from related parties have not been mentioned in therespective documents and hence we are unable to comment on this clause.

x) According to the information and explanations given to us and on the basis ofrepresentation of the management which we have relied upon no fraud by the Company or onthe company by its officers or employees has been noticed or reported during the year.

xi) According to the information and explanations given to us managerial remunerationhas been paid in accordance with the provisions of section 197 read with Schedule V to theCompanies Act 2013.

xii) Since the company is not a nidhi company this clause is not applicable.

xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013 asapplicable and the details have been disclosed in the Financial Statements as required bythe applicable accounting standards.

(xiv) According to the information and explanations given to us the requirements ofSection 42 of The Companies Act 2013 have been prima facie complied in respect of sharesallotted to Qualified Institutional Buyers. The funds so raised were temporarily placed incurrent investments pending utilisation for the stated objective and subsequentlyutilised for the purpose for which they were raised.

(xv) The company has not entered into any non cash transactions with directors orpersons connected with him.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of lndia Act 1934.

for M P Chitale & Co

Chartered Accountants

Firm Regn No. 101851W

Ashutosh Pednekar

Partner

ICAI M No. 41037

Place:Mumbai

Date : May 20 2016

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT (Refer to in paragraph 5 (ii)(f) ofour report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AshokaBuildcon Limited ("the Company") as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note")issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for M P Chitale & Co

Chartered Accountants

Firm Regn No. 101851W

Ashutosh Pednekar

Partner

ICAI M No. 041037

Place : Mumbai.

Date :May 20 2016

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